SHUAA Capital, a leading regional financial services institution, has announced record results for the financial year ended 31 March 2008. The outcome to the year was driven by all business lines performing well in upbeat markets. The Board of Directors of SHUAA Capital has proposed a cash dividend of 45 per cent of the nominal value of shares (AED0.45 per share) which is subject to approval at the upcoming Annual General Meeting.
Year end operating income increased by 83.3% to AED710.8 million (2006/7: AED387.7 million), an increase of AED323.0 million and net profit rose by 53% to AED400.5 million (2006/7: AED261.8 million), an increase of AED138.7 million year on year.
Mr. Majid Saif Al Ghurair, Chairman of SHUAA Capital said: “Our year end results clearly demonstrate that we are delivering on our promise to shareholders. More importantly, we have achieved both scale and momentum across our regional business. We are especially proud that in IPOs our investment banking division ranked number 1 in the UAE, number 2 in the GCC, and number 18 globally during fiscal 2007.”
Mr. Iyad Duwaji, Chief Executive Officer of SHUAA Capital commented: “The excellent outcome to this year was driven by marked progress over all the markets and client segments we serve. Each of our six business divisions maintains leadership positions in their field and we have built greater presence across the region. We have further strengthened our financial resources during the year with the issuance of $456 million of convertible bonds, and are extremely well placed to further capitalize on the tremendous opportunities that GCC markets offer. We are increasingly attracting the attention of both regional and global institutional investors.”
SHUAA’s results were driven by a solid performance during all four quarters. During the first quarter, SHUAA produced operating income of AED144.9 million and net profit of AED74.5 million. In the second quarter, operating income was AED89.7 million and net profit was AED54.0 million. The third quarter was exceptional and we generated operating income of AED368.5 million and net profit of AED213.0 million. The third quarter was driven primarily by contributions of asset management performance fees, equity capital market activity, record brokerage trading volumes as well as a divestment in our private equity division and healthy returns on our principal investments portfolio, seeing the highest quarterly return in the company’s near thirty year history. The fourth quarter resulted in operating income of AED107.7 million and net profit of AED58.9 million while markets were more challenging.
During the year, client’s funds under management increased 117.3% to AED14.23 billion (2006/7: AED6.55 billion) helped by the strong international investor appetite for our regional products and services, primarily asset management, brokerage and private equity.
“SHUAA’s stated aim is to be the premier financial services institution in the GCC region that specializes in managing the growing inflow of capital to our markets. We have pioneered the idea of the GCC as an asset class and as a destination of capital since 1998, and we remain passionate about it. Our vision has been endorsed already and we are closer than ever to being recognized as an integral part of the BRIC growth story.” Mr. Duwaji concluded:” We will also remain at the vanguard of regional integration of the GCC into the global capital markets universe and SHUAA’s share is in fact a great proxy on this growth story.”
